IDCZ turnover up 35pc

from a US$19,6 million in 2010.
Net current assets or technical solvency was positive at US$17,8 million, but liquidity remained tight due to slow paying institutional debtors.
The group operational profit before interest, impairment, retrenchment and exchange loss provisions turned around from a loss of US$16,3 million in 2010 to a profit of US$1,4 million on the back of increased revenue and reduced overheads. However, despite this the group suffered a loss after interest of US$10,44 million.
Capacity utilisation remained low at an average of 35 percent and this was uneconomic due to lack of equity, supplier lines of credit for plant refurbishment and working capital.
Poor utility services, load shedding and NEC-driven wage increments unrelated to productivity also continued to curtail the growth of profit.
The corporation mobilised more than US$50 million in medium-term funds from both local and offshore sources in the second half of last year.
Interest on debt rose by 780 percent from US$500 000 in 2009 to US$3,9 million in                 2010 and by 236 percent to US$9,2 million in 2011.
IDCZ said the rebuilding of the Zimbabwe Glass Industries G2 furnace and the Zimbabwe Copper Industries furnace could not be completed due to late securing of funds.
According to the group, the Zimglass G2 furnace was recommissioned last month while Zimcopper and Zimphos plants will be operational at the end of this month.
Some subsidiary companies like G & W Industrial Minerals and Dorowa Minerals received new equipment. IDC said its associate company, Surface Investments, upgraded its plant during the year. 
“It is expected that the second half of 2012 will start reflecting the impact of this capital injection,” IDC said in its statement.
During the period under review, Motec Holdings (Pvt) Limited, a strategic business unit of the corporation, secured the Komatsu earthmoving equipment franchise and dealership.
Commenting on the new board, the corporation said the board headed by CBZ Holdings chief executive Mr John Mangudya has not had time to review and formulate a new strategic thrust to control the emerging debt issue and arresting any further erosion of shareholder equity.
This it said was critical in turning the corporation into a dynamic and responsive driver for industrial development in Zimbabwe.
The IDCZ lost all monetary retained earnings it had relied on in the past at dollarisation and due to lack of fiscal space, its sole shareholder, the Government of Zimbabwe, has not injected any fresh equity capital into the corporation.
The IDCZ is a self-funded development finance institution with interests in various sectors of the economy.